The Gap, Inc. (GAP)
Operating return on assets (Operating ROA)
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,112,000 | 560,000 | -69,000 | 810,000 | -862,000 |
| Total assets | US$ in thousands | 11,885,000 | 11,044,000 | 11,386,000 | 12,761,000 | 13,769,000 |
| Operating ROA | 9.36% | 5.07% | -0.61% | 6.35% | -6.26% |
February 1, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $1,112,000K ÷ $11,885,000K
= 9.36%
The operating return on assets (operating ROA) for The Gap, Inc. has shown significant fluctuations over the past five years. Starting from a negative figure of -6.26% on January 30, 2021, the company managed to improve its operating ROA to 6.35% by January 29, 2022. However, in the following year, the operating ROA dropped to -0.61% on January 28, 2023. Subsequently, there was a notable recovery as the operating ROA increased to 5.07% by February 3, 2024, and further improved to 9.36% on February 1, 2025.
These fluctuations indicate variability in the company's ability to generate operating profits from its assets. The negative values suggest that the company may have faced challenges in effectively utilizing its assets to generate operating income during certain periods. The positive values, especially the notable increase to 9.36% in 2025, indicate an improvement in the company's operational efficiency and profitability.
Further analysis of the factors influencing these fluctuations, such as changes in revenue, expenses, asset base, or operational efficiency, would provide a more comprehensive understanding of The Gap, Inc.'s performance over the years.
Peer comparison
Feb 1, 2025